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Cepea, March 4, 2024 – The demand for white crystal sugar continues low in the spot market of São Paulo state. After prices hit BRL 148 per 50-kilo bag in mid-February, purchasers were away from trades, buying only to meet immediate demands. In this scenario, players from mills offered the product at lower quotations, even with the more limited supply in this offseason period.
Between February 19 and 23, the CEPEA/ESALQ Index for sugar (Icumsa 130-180) averaged BRL 146.07 per 50-kg bag, for a decrease of 1.01% compared to that in the previous week (BRL 147.56/bag). In February, the Index dropped 0.58%.
From February 19-23, Cepea calculations show that the weekly average of the CEPEA/ESALQ Index for white crystal sugar (Icumsa 130-180) closed at BRL 146.07 per 50-kilo bag, while the average of the March/24 contract at ICE Futures closed at 147.09 BRL per bag. Thus, exports remunerated 0.69% more than sales in the spot market of SP did. This figure considered weekly averages at USD 68.46 per ton of freight and charges, USD 119.37 per ton for quality premium and dollar at BRL 4.9540.
Abroad, demerara futures moved down in late February, due to the progress of the crops in Asia. In India, the government has indicated that it may not allocate more sugarcane to produce ethanol, which, in turn, is likely to increase the domestic sugar supply. Moreover, the rainfall in most of the Central-Southern area in Brazil has been favoring the development of the sugarcane from the 2024/25 season, which has reinforced the downward trend at ICE Futures.
(Cepea-Brazil)
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Fonte: Cepea